Correlation Between Atmos Energy and Safety Shot
Can any of the company-specific risk be diversified away by investing in both Atmos Energy and Safety Shot at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Atmos Energy and Safety Shot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atmos Energy and Safety Shot, you can compare the effects of market volatilities on Atmos Energy and Safety Shot and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Atmos Energy with a short position of Safety Shot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atmos Energy and Safety Shot.
Diversification Opportunities for Atmos Energy and Safety Shot
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atmos and Safety is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Atmos Energy and Safety Shot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safety Shot and Atmos Energy is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Atmos Energy are associated (or correlated) with Safety Shot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safety Shot has no effect on the direction of Atmos Energy i.e., Atmos Energy and Safety Shot go up and down completely randomly.
Pair Corralation between Atmos Energy and Safety Shot
Considering the 90-day investment horizon Atmos Energy is expected to generate 0.16 times more return on investment than Safety Shot. However, Atmos Energy is 6.13 times less risky than Safety Shot. It trades about 0.58 of its potential returns per unit of risk. Safety Shot is currently generating about -0.12 per unit of risk. If you would invest 13,687 in Atmos Energy on September 3, 2024 and sell it today you would earn a total of 1,445 from holding Atmos Energy or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atmos Energy vs. Safety Shot
Performance |
| Timeline |
| Atmos Energy |
| Safety Shot |
Atmos Energy and Safety Shot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atmos Energy and Safety Shot
The main advantage of trading using opposite Atmos Energy and Safety Shot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atmos Energy position performs unexpectedly, Safety Shot can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Safety Shot will offset losses from the drop in Safety Shot's long position.| Atmos Energy vs. NewJersey Resources | Atmos Energy vs. One Gas | Atmos Energy vs. Northwest Natural Gas | Atmos Energy vs. Chesapeake Utilities |
| Safety Shot vs. The Coca Cola | Safety Shot vs. National Beverage Corp | Safety Shot vs. Keurig Dr Pepper | Safety Shot vs. Coca Cola Femsa SAB |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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